• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

company law

Extracts from this document...

Introduction

Critically Assess the Effects of Corporate Separate Personality A company once incorporated, is a legal person in its own rights and is to be regarded as separate entity from its members. Incorporation is the act of creating or organizing a corporation under the laws of a specific jurisdiction. The corporation may be a business, a non-profit organization, sport club or even a government of a new city or town. To incorporate a business the owner must first register with the Registrar of Companies. According to Companies Act 2006 section 16 it explains the effect of registration.1 All company after incorporation has legal rights and obligations. These obligations must be followed if the company is to 'survive'. Each corporation has the ability to sue and be sued, the ability to hold assets in its own name, the ability to hire agents, the ability to sign contracts and the ability to make laws which govern the internal affairs. ...read more.

Middle

The principal in Solomon V Solomon has led to the phrase the veil of incorporation. Only the judiciary or the statute may lift the veil of incorporation. Another case that distinguishes the concepts of corporate personality is Lee V Lee's Air Farming Ltd. In this Case the husband of Lee (Cathrine) formed a respondent company that carried on a business of crop spraying from the air. He was then killed while performing his duties. His wife then claimed compensation from the company as an employer of her husband. Since Mr. Lee owned 2999 of 3000 �1 shares and since he was the governing director the was an issue as to whether a relationship of employee can exist between him and the company. The court held that he was separate from the company and his wife was entitled to compensation required by the act of 1922. ...read more.

Conclusion

Also loss of privacy and cost of documentations is an issue of separate corporate responsible. However their is an exception to the rule of Salomon V Salomon, this is the lifting ofthe veil of incorporation. "the veil never means that the affairs of the company are completely concealed from view" (Pickering 1968 31 modern Law Review). The courts will now piece the veil of incorporation under both common law and legislation. The outcome of the case of Woolfson v Strathclyde Regional Council indicates the exception rule to Salomon V Salomon. The ruling in this case is that the veil can be pierced only when the company is a mere facade concealing the true facts. Since the Salomon case their has never been a doubt of what contributes as corporate separate governance. The case specified all the rules that is able to distinguish from its members and the company. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Sources of Law section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Sources of Law essays

  1. Commercial law discussion - 'Transfer of Title by a Non-Owner'.

    In this case there is a conflict of interest between that of the original owner of the car who is seeking to recover the car and the ultimate buyer who has paid good money for the car which he beloved the seller was entitled to sell to him.

  2. GNVQ Business - Customer Satisfaction

    Marks and Spencer Complaints It is important for Marks and Spencer to deal with customer complaints to make sure that they do not lose customers or gain a bad reputation. Below there are examples of complaints that M&S could receive and how M&S could deal with these complaints.

  1. THE STATE OF GLOBAL GOVERNANCE ON TERRORISM

    Prior to the establishment of the Ottawa Mint in 1908, coins used in Canada were minted in the United Kingdom. Sovereigns were he first gold coins minted in Canada, identical to those produced in the United Kingdom except for a small identifying "C."

  2. Outline many of the basic elements of law that relate to business and marketing.

    administer occupational licensing regimes * Monitor the market and provide effective policy advice to Government. Many of the OCBA roles stated above relate directly to the marketing industry. I will outline and discuss the relevant roles. To begin, the first role above states, "Secure compliance with South Australia's consumer laws, including taking appropriate action to enforce the law when necessary."

  1. Advice on an incident concerning Land Registration.

    estate contract. This is any contract to convey or create a legal estate or any option to purchase a legal estate. Registering a right as a land charge ensures that anyone taking a later estate or interest in the land will take it subject to that right.

  2. Argue for and against the incorporation of the Human Right Act into British law

    These rights clash with the sovereignty of parliament because sovereignty means that there is nothing that can blind our parliament. But the Human Rights Act tries to do this. When the Human Rights Act really gets going, judges will be involved in political cases.

  1. Unmarried fathers and their children - has the law got it right?

    Unless they acquire parental responsibility they cannot consent to a variety of major aspects that are fundamental to their child. At common law a parent has a right to possession of his child 9 and the person who had parental responsibility could require any other person who had the child to hand him or her back.

  2. Should people have a right to privacy?

    Secondly, he stated that the judiciary had not initiated a "privacy law" but super-injunctions were being used too regularly and should be more limited. He summed up the dilemma by saying ?Our starting point was the maintenance of the fundamental principles of open justice and freedom of speech.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work